5 Steps to Asking Someone for Money 💸

The best kind of loan is the one with 0 interest - however, usually the only ones willing to give you an interest free loan is a friend or family. Asking someone you love for money can feel shameful and embarrassing, and it’s not always the best possible option depending on your history, but it’s often better than taking out a high interest loan. Here are some tips on when and how to approach your family and friends for money.

When is it a good idea to ask?

Here is a checklist you can follow to know if it’s a good idea to ask:

✅ If you haven’t asked in the past, or if you’ve asked once or twice and paid back promptly

✅ If you do not still owe them money from a previous ask

✅ If your alternative options are very high interest/unaffordable

✅ If you’ve made a plan on how to pay them back

✅ If you’ve marked everything off this list, it may be a good idea to move forward.


How should I ask?

Here is a 5-step guide of asking your friend or relative for a cash spot.

  1. Ask them to meet up face to face at a certain time in an environment that’s comfortable for them, perhaps at their home or a coffee shop. Do not ambush them during a get-together. You can say you want to catch up and don’t necessarily need to be specific about why.
  2. Before the meeting, think about exactly how much you will need and why. Be clear and honest about your story.
  3. Before the meeting, develop a plan of how you will pay them back. Write down on a piece of paper: how much you need to borrow, when is the deadline to pay the full amount back, if you plan to pay in installments and how often, and how you plan to get the cash to fulfill this plan. See a downloadable template here. Don’t bring this agreement to the meeting, as it will make them feel pressured - it’s more of a guide for you.
  4. Now that you’re at the meeting, tell them your story and why you need the money. Be open and allow them to ask questions to better understand the situation. Once you feel they are warming up to the idea, walk them through your plan (again, without whipping the paper out). Let them give suggestions of how they feel comfortable being paid back as well - here you can feel free to take notes on a napkin or in your phone. Let them know that you will write all of this down in an agreement and send it over to them later.
  5. After the meeting, once you’ve adjusted the agreement to the terms you both agreed on, send it over to them. If you think they need the extra comfort of a legally binding document, you can choose to sign it as well. Most family and friends choose not to and accept the possibility that you won’t pay them back; this may be best in your situation, but don’t take advantage of it.

Other Low-Interest Loans

There are some other places you can go for 0 or low interest loans, specifically charity and government organizations. Follow this link to read more about it.

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